Unfortunately that a Brent Cross residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Brent Cross property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Brent Cross will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Brent Cross leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jackson, came critically near to the 80-year threshold with the lease on his one bedroom flat in Brent Cross. In buying his property two decades ago, the length of the lease was of little relevance. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Jackson was able to extend his lease just under the wire last April. Jackson and the freeholder eventually agreed on sum of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,150.
Last Winter we were phoned by Dr P Morel , who completed a one bedroom apartment in Brent Cross in November 2005. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative premises in Brent Cross with 100 year plus lease were valued around £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished on 26 July 2102. Taking into account 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Brent Cross premises is First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100). This case affected 1 flat. The unexpired term was 71 years.